It is an important coverage that is sometimes overlooked when a business purchases their insurance coverage. Many are not aware the protection exists, do not have adequate limits or understand how the coverage applies to their individual business exposure. That coverage is Business Income Protection and it is necessary in order to be able to continue or re-open your operation!

The fire policy will respond to repairing or replacing the damage property due to a covered peril such as fire. Business income will cover the loss of income you sustain while the damage is being repaired when you business must be closed. There are two standard forms used to provide business income coverage. They are Business Income and Extra Expense and Business Income Without Extra Expense.

In addition to the basic income coverage there are different options and endorsements that can be purchased. Some of these options include Extra Expense, rental value, business income from dependent properties, utility services interruption, civil authority and leasehold interest coverage.
A crucial element in this coverage is to determine the limit of coverage. It is important to be as accurate as possible because if limits are inadequate you may be subject to a penalty . The business income worksheet is a tool used to determine the amount of coverage needed.

As a Trusted Choice Agency, we can provide you with a comprehensive insurance program that includes this coverage and help you to develop limits to meet your needs.